Chapter Seven Human resource planning and human resource information systems

Human resource planning (HRP) Objectives 1 Discuss how to align a company’s human resource planning with its strategic direction. 2 Determine the labour demand of workers in various job categories. 3 Discuss the advantages and disadvantages of various ways of eliminating a labour surplus and avoiding a labour shortage. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

The human resource planning (HRP) process The process through which organisational goals are translated into human resource goals, concerning staffing levels and allocation. Human resource planning involves forecasting human resource needs for an organisation and planning the necessary steps to meet these needs. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Figure 7.1 Overview of the HRP process Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Forecasting The attempt to determine the supply of and demand for various types of human resources, in order to predict future labour shortages or surpluses in areas within the organisation. Determining labour demand Determining labour supply Transitional matrices Matrices showing the proportion or number of employees in different job categories at different times. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

A hypothetical transitional matrix for a car parts manufacturer Table 7.1 A hypothetical transitional matrix for a car parts manufacturer Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Goal setting and strategic planning Reducing an expected labour surplus, for example: Downsizing Early retirement programs or Avoiding an expected labour shortage, for example: Employing temporary workers Outsourcing Overtime and expanding worker hours Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Downsizing The planned elimination of large numbers of personnel designed to enhance organisational effectiveness. Workforce reduction a type of downsizing strategy, using a cost-cutting approach emphasising short-term results and redundancies Organisational redesign restructuring or delayering of the organisation, with elimination of functions, layers and work processes Systemic change a program of organisational cultural change involving all staff Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Major reasons for downsizing Cost reduction Introduction of new technology Globalisation and changing location of business Mergers and acquisitions leading to reduced need for bureaucracy Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Major reasons for the failure of downsizing Initial cost savings but long-term negative effects Loss of people who are ‘irreplaceable assets’ ‘Survivor syndrome’: loss of motivation, self-absorption, risk-aversion ‘Survivors’ seek new employment Reputational damage Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Program implementation and evaluation Accountability Authority and resources available to accomplish the stated goals Regular progress reports on implementation Evaluation of results Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Formal HRP is more likely in organisations that: are larger have greater overall business planning sophistication have top-management support for human resource planning have more involvement of human resource managers in the business planning process have greater integration across human resource activities. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

A strategic approach to HRP includes the following: Top management and HR managers that desire proactive involvement of HRM in the achievement of organisational goals. The integration of employee needs and wishes for career development with organisational goals. Coordination across HRM activities in light of organisational strategies and goals. Adherence to principles of equal opportunity. A focus on planning at the organisational level, not only at the industry level or regional level. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Summary of human resource planning When managed well, human resource planning can enhance the success of the organisation while minimising difficulties resulting from poorly anticipated labour surpluses or shortages. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Human resource information systems (HRIS) Objectives 1 Discuss the types of technologies that can improve the efficiency and effectiveness of HR. 2 Discuss human resource information systems and their various applications for HR activities. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Human resource information systems (HRIS) A system used to acquire, store, manipulate, analyse, retrieve and distribute information that is related to a company’s human resources. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Factors leading to use of more sophisticated HRIS Development of increasingly complex and comprehensive IT systems Economic pressures Increasing demands by government for organisations to collect employee data Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

HRISs are used for three broad functions Transaction processing, reporting and tracking Decision support systems Expert systems Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Information technology and HRM Technology: advantages or disadvantages? Employees gain complete control over their training and benefits enrolments (self-service). A paperless employment office can be created. There is streamlining the HR department’s work. Technology can provide knowledge-based decision support. Employees and managers select the type of media they want to use to send and receive information. Work can be completed at any time, any place, day or night. Enables closer monitoring of employees’ work. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

HR technologies Interactive voice technology Internet Networks and client-server architecture Relational databases Imaging Laser disc technology Groupware, intranets and portals Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

HRIS: software applications for HRM HR planning applications Succession planning Workforce profile analysis Workforce dynamics analysis Staffing applications Applicant recruiting and tracking Employee database development Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

HRIS: software applications for HRM (continued) Performance management applications Learning and career development applications Compensation and benefits applications Payroll Job evaluation Salary surveys Salary planning International compensation Benefits management Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri

Summary of human resource informations systems Increasingly, organisations depend on more sophisticated HRIS in order to support human resource activities. Key drivers are: the increasing globalisation of business the development of more flexible, non-traditional organisation structures the development of information technology. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 2e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright. Slides prepared by Helen De Cieri